Tag Archives: Corinthian Colleges

The Dept. of Education Fires A Shot Across the Bow of the Higher Learning Commission (HLC)

December 17, 2009 – 4:33 pm

The education stocks are trading off today following the release of a memorandum from the Department of Education’s Office of Inspector General (OIG).   You can find the memorandum here.  Effectively the OIG has asked the Department of Education to review the status of the HLC and potentially “limit, suspend, or terminate HLC’s recognition by the [...]

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Unofficial FY07 3-Year Cohort Default Rates Come In-line With Expectations, Now Comes the Hard Part for COCO and WPO

December 14, 2009 – 6:51 pm

The Department of Education released unofficial 3-year cohort default rate data this morning.  You can find the DOE’s press release here, which also contains a link to an excel file with school by school 3-year cohort default rate data.  Overall, the data was more or less inline with our expectations.  The addition of an extra [...]

By PAA Research | Posted in For-profit Education | Also tagged , , , , , , | Comments (1)

Preparing for the Release of Unofficial 3-Year Cohort Default Rate Data – Follow the Script, At the Very Least Self-Regulation Is on Its Way

December 9, 2009 – 12:37 pm

We have expressed our concerns in the past about the impact the transition from a 2-year to a 3-year cohort default rate calculation could have on the for-profit education sector.  As a reminder, as part of the Higher Education Opportunity Act of 2008 the calculation of the cohort default rate was expanded from 2-years to [...]

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Preparing for the Release of the Final FY07 Cohort Default Data – Which Stocks Could Be Impacted

September 11, 2009 – 11:10 am

On Monday or Tuesday of next week, the Department of Education will release final cohort default data for FY07.  Before we get into company specific discussions, we wanted to review how the default rate data is calculated and provide you with an outline of the timing of future release dates for cohort default rate data. 
How Cohort [...]

By PAA Research | Posted in For-profit Education | Also tagged , , , , , , , , , , , | Comments (0)

COCO’s Bad-Debt Expense Slight of Hand, 25%+ Cohort Default Rates Are Coming, It Appears Regulatory Headwinds Could be Mounting

August 27, 2009 – 9:02 am

We have written extensively about our concerns about the for-profit postsecondary education space and ITT Educational Services, Inc. in particular.  Our primary thesis is that overly aggressive tuition policies have significantly reduced the return on educational investment to the point where for some programs it is outright negative.  This is a SECULAR issue, which will be [...]

By PAA Research | Posted in For-profit Education, Short Ideas | Also tagged , , , , | Comments (3)

Performance of Sallie Mae’s “Non-Traditional” (aka for-profit) Loan Book Looks Frightening, A Few Thoughts on ESI’s Upcoming 2Q09 Earnings Release

July 22, 2009 – 1:11 pm

We wanted to highlight a few details from Sallie Mae’s earnings release last night and subsequent conference call that we think are important to followers of ITT Educational Services, Inc., Career Education Corp. and Corinthian Colleges, Inc. As we have discussed previously, we are closely watching the performance of Sallie Mae’s “non-traditional” [...]

By PAA Research | Posted in For-profit Education, Short Ideas | Also tagged , , , , , , | Comments (2)

Can the Income Based Repayment Plan Save ESI from A Tidal Wave of Student Loan Defaults?

July 5, 2009 – 1:30 pm

In our original post on ITT Educational Services, Inc., we argued that the company’s business model was structurally broken because it was no longer clear that students earned a positive return on their educational investment. After more than a decade of increasing tuition at an annual rate twice that of inflation, the affordability equation for [...]

By PAA Research | Posted in For-profit Education, Short Ideas | Also tagged , , , , , , , | Comments (1)